W.P. Carey Affiliate Grabs Retail Site in Oslo
- Jun 01, 2015
W.P. Carey Inc.’s CPA:18, in a joint venture with Oslo-based developer, Winta Eiendom AS—Global, has acquired a multi-tenant retail site in Oslo, Norway for approximately $105 million from Coop Norge AS.
“The investment allowed us to acquire a high-quality, cash flow generating retail asset in a prime location in one of Oslo’s busiest and strongest retail areas,” Jason Fox, W. P. Carey’s managing director & head of global investments, told Commercial Property Executive. “The strength of the market, Oslo’s growth patterns as well as the financial strength of the anchor tenant made this an attractive acquisition at this time.”
Located in Alna, a 1.8 million square-foot destination retail district in Oslo, the site consists of 253,350 square feet of retail space, 46,800 square feet of basement/warehouse storage and 35,575 square feet of mezzanine office space.
The property is situated in one of the busiest and strongest retail clusters in the area, with stores such as IKEA, Tesla and Toys “R” Us nearby.
Currently, 64 percent of the retail facility’s rent comes from anchor tenant COOP Ost AS. Other major tenants include Expert and Lampehuset, responsible for a combined 23 percent of annual rental income. The leases have a weighted average remaining lease term of eight years.
“Our strategy is to invest in assets leased to strong tenants that generate current cash flow and are supported by solid underlying real estate fundamentals,” Fox added. “In addition the proximity to central Oslo, the Gardermoen International Airport and accessibility and visibility from the E6 motorway, Norway’s second busiest road, made the location very appealing to us.”
Although Fox said the company has no plans to renovate the property or make any immediate changes, it will look for opportunities to add value and maximize future returns for its investors.